PanBio tips profit for 2003-04

Queensland-based diagnostics company PanBio (ASX:PBO) has ended the financial year with an anticipated loss, but expects the 2003-2004 year to be profitable, said chairman Ian Sandford today.

The company posted a net loss after tax of AUD$4.32 million compared to last year's $1.36 million, with revenues of $14.86 million, down $2 million from last year. However, the underlying revenue growth was five per cent, excluding the 2002 dengue outbreak in South America and the rationalisation of the company's product base in early 2003.

In addition, the underlying loss was decreased by 16 per cent excluding one-time restructuring and legal costs, and taking into account the strengthening Australian dollar.

"As we said to the market earlier, this is what we expected the year to turn out like -- it was no surprise," Sandford said.

Sandford said a combination of increased revenues, decreased operating costs and more efficient and effective management teams would lead the company to profitability this financial year -- the first time since the company floated. With a cash balance of $4.1 million at the end of the year, the company is in a healthy state, he said, and a number of potential new products approaching the stage of preliminary clinical trials.

Among the significant events of the year was the development of the first commercially available diagnostic kit for West Nile virus, which was submitted to the FDA for approval in early June and approved just after the end of the financial year in July.

Sandford also singled out the changes to the management team as a significant event for the year.

"It has set the company up to bring it to the next level of activity," he said. The company expects to have revenues of $100 million by 2010.

PanBio's Year

• September 2002: University of Southern Queensland Sciences Faculty Dean Prof Stuart Hazell appointed VP of R&D.
• October 2002: Nicholas Thliveris appointed VP of strategic marketing. November 2002: Secures exclusive licence for DNA diagnostics technology from the CRC for Diagnostics; announces appointment of former DuPont executive Jim Porter as CEO to replace Mel Bridges.
• December 2002: PanBio releases peptide test for glandular fever (Epstein Barr virus).
• February 2003: Mel Bridges stands down as MD and resigns from board while Jim Porter takes over CEO role.
• March 2003: CFO Phillip Auckland becomes VP of human resources; finance manager Megan Portas promoted to CFO.
• April 2003: PanBio receives US patent approval for Oligo Rapid technology platform.
• June 2003: PanBio submits West Nile Virus diagnostic test to US FDA for approval.
• July 2003: West Nile Virus diagnostic kit approved by US FDA giving PanBio 'first-to-market' advantage.